When does a mortgage servicer not have to modify a loan?

If the investor would be better off financially after a foreclosure rather than a modification—called “net present value” or “NPV” negative— then the servicer doesn’t have to modify the loan. Sometimes, however, servicers make a mistake when calculating the NPV.

What should I do if I fail to pay my mortgage servicer?

Also, if you call your mortgage servicer to ask for a service, like faxing copies of loan documents, make sure you ask whether there is a fee for the service and how much it is. Special Considerations for Loans In Default. If you fail to make one or more payments on your mortgage loan, your loan is in default.

What happens if a mortgage company refuses to accept your payment?

When the mortgage company refuses to accept your payment, the consequences can be devastating. It’s important to determine the reason your payments are being turned away so you can resolve the issue. If a mortgage company refuses your payments, your mortgage obligation is delinquent, foreclosure may begin and your credit score could take a hit.

What are the common problems with mortgage servicers?

Below are some common problems that servicers perpetrate in the loan modification process, including: using incorrect income information in processing the net present value or making another calculation error failing to honor a modification agreement after a servicing transfer.

Can a mortgage servicer make a wrong loan modification?

Mortgage servicers handle loan modification applications from homeowners. Unfortunately, servicers sometimes make serious errors when processing modification requests. These mistakes can cause many problems for a homeowner, like missing out on getting the loan modified or even a wrongful foreclosure.

Where can I Opt Out of service offers?

If you’re getting service offers, one website you should take a look at is the opt out section of the Data and Marketing Association. Participating marketers and services in this program honor the preferences you set out within your account on the site.

What happens when I transfer my mortgage to a new servicer?

Transfer of Servicing. a statement explaining your rights and what to do if you have a question or complaint about the servicing of your loan. There is a 60-day grace period after the transfer: during this time you cannot be charged a late fee if you mistakenly send your mortgage payment to the old servicer.